Okeanis Eco Tankers to Get Funds for Two VLCC Newbuilds

Nov 03 2018

Okeanis Eco Tankers Corp has secured firm commitments for two secured loan facilities for an aggregate amount of $116.3 mill.

The commitments came from Credit Suisse and BNP Paribas and will be used to finance of two VLCC newbuildings, Hull 3051 (Credit Suisse – $58.125 mill) and Hull 3089 (BNP Paribas – $58.175 mill), both of which are under construction at Hyundai Heavy Industries.

Each facility carries an interest rate over Libor of less than 2.5%, a six-year tenor, a blended average repayment profile of 17.5-years, and allow for drawdowns to finance pre-delivery yard instalments.

These commitments mark the successful conclusion of the first step in its efforts to secure competitive financing for its last four VLCC newbuildings, the company said.

Okeanis is also in advanced discussions with potential lenders for its two remaining unfinanced VLCC newbuildings and expects to conclude financing arrangements on substantially similar terms to the facilities outlined above.

While these discussions are yet to be concluded, the company said that it remained confident that bank finance on acceptable terms will be secured in respect of the two remaining VLCCs this month, thus drawing to a close the debt financing of the company’s newbuilding programme.

At the same time, the company has initiated the process of changing the listing of its shares from Merkur Markets to Oslo Axess, a regulated market operated by Oslo Børs. In connection with this move, Okeanis will, inter alia, contact a select group of potential investors (including its existing shareholders) to discuss a potential equity raise of up to $55 mill.



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